Which of the following is a normative statement?
A) Running government budget deficits leads to higher market interest rates.
B) An increase in taxes will cause higher unemployment.
C) An increase in tariffs will increase the domestic prices paid by consumers.
D) Income should be redistributed from the top 2 percent of wage earners to the lower income brackets.

Question

Quizplus · Accepted Answer

A normative statement is a statement that expresses a value judgment about whether a situation or outcome is desirable or undesirable. Option D expresses a value judgment about what should be done with income and is therefore a normative statement. Options A, B, and C are positive statements that describe cause-and-effect relationships and do not express any value judgments.

Which of the Following Is a Normative Statement